The beauty of fixed income investing is that it has investment solutions suited to most macroeconomic cycles. Interest rates and bond prices have an inverse correlation i.e. as yields head lower, bond prices increase and vice versa.
According to a forex dealer, state-owned banks and private lenders sold dollar likely on the behalf of the central bank to stem weakness in the local currency.
Rising crude oil prices, a worsening current account deficit, and a slowdown in foreign investment inflows threaten to upend economic recovery.
Yesterday, the rupee had gained 3 paise to end at 67.62 against the US currency, cutting short its two-day decline.
Market analysts call Indian rupee overvalued and predict that it may reach up to Rs 70 per dollar, possibly, by the next year
USD-INR pair is expected to quote in the range of 67.45 and 67.80-67.95, says Motilal Oswal.
USD-INR pair is expected to to quote in the range of 67.45 and 67.80-67.95, says Motilal Oswal.
The rupee washed out its initial gains to close down by 7 paise at 67.49 against the US currency due to fag-end dollar demand from banks and importers.
Today, USD-INR pair is expected to quote in the range of 67.45 and 67.85, says Motilal Oswal.
The Indian rupee opened with marginal gain of 4 paise at 67.46 per dollar on Monday versus previous close 67.50.
Meanwhile, Indian bond markets staged a rebound after two-day intense selling and the 10-year benchmark bond yield finished lower at 7.95 percent after briefly climbing 8 percent in early trade. The RBI, meanwhile, fixed the reference rate for the dollar at 67.5228 and for the euro at 79.5824.
The Reserve Bank of India today fixed the reference rate of the rupee at 67.5228 against the US dollar and 79.5824 for the euro.
The sovereign 10-year bond yield has risen over 60 basis points since April and is near a three-year high due to a lack of investors.
Rupee opened lower by 34 paise at 67.46 per dollar versus 67.12 yesterday.
The central bank on Wednesday increased key interest rates by 25 basis points to 6.25 percent - the first such hike in more than four years.
Buy USD-INR in the range of 66.95-67.01, said ICICIdirect.
Forex market sentiment was buoyed by the Reserve Bank retaining growth forecast for the current fiscal at 7.4 percent on hopes of further boost to investments and higher consumption.
The rupee is expected to quote in the range of 66.90 and 67.35, it added.
Today, rupee is expected to quote in the range of 66.90 and 67.35, says Motilal Oswal.
Extreme currency volatility should be expected in the current environment of enhanced uncertainties about the economy and policy, a forex dealer commented.
There is a high chance that the MPC may want to prepare the market ahead of its departure from its neutral policy stance and gradually pave the way for hiking rates in coming months.
For the day, expected to quote in the range of 66.90 and 67.35, says Motilal Oswal.
A broadly stronger Indian unit also rallied against British pound, euro and Japanese yen.
For the day, rupee expected to quote in the range of 67.50 and 67.90, says Motilal Oswal.
The rupee edged up by 2 paise to end at 67.41 against the American currency on stray dollar selling by banks and exporters also supported by expectations of robust macroeconomic outcomes.